OfflineNew REIs especially need to read this..
This doesn't affect me directly, but my daughter is having problems with her husband because of my REI. Some time back, I posted a problem I had with a REA who said what I was doing was unethical, illegal, etc. Well, this real estate agent is my son-in-law's mother. Apparently, she is still holding the grudge because I had sent her, her broker and their attorney an answer to her/their email stating that I was not doing things ethically nor legally. As it turned out and I'm sure a lot of you remember reading this, she conveyed wrong information to her broker who in turn consulted an attorney and the broker sent me an email (copying attorney) saying because of their "commitment to operate under strict ethical and legal means" they could not work with me. My response to them all was that the information was relayed incorrectly (by the REA), and I explained that I do not make offers without a real contract being filled out (as she stated) and I do not "fake" checks that are used as EMD (as she stated). I did explain that the investor friendly REA DOES make copies of checks to use for offers (if offer is accepted, they release the check) and that she DOES use a template for my offers and just fill in pertinent information when I make an offer. Nothing illegal about any of that! All this could have been prevented if she had truthfully told me she had not worked with investors previously when I asked her that question.
Well, to make a long story short(er), this REA (my son in law's mother) told him on Friday that I was doing illegal things with real estate. He evidently did not know about what went on before (he works away from home a lot as a project engineer) and she filled his ear. He of course told my daughter and she defended me. She knew what went on before so it was not new to her and she tried to explain it to him as best as she knew how. However, he is now accusing her of "believing anything", etc, etc. Now they are having problems because obviously he "believes anything" his mother says.
I'm just letting new investors especially know that sometimes because of the general public's ignorance about real estate investing or real estate in general, people accuse us of operating as real estate agents without a license. Of course we all know the laws and we are very careful not to break them. Be prepared to defend yourself and your position as a real estate investor because that's exactly what you are. As you know, you make that very clear to sellers and anyone else that you are working with so that everyone involved knows where you're coming from. I always do that.. and I did that with this particular real estate agent but I went even further (because she was in the family) and explained to her how she could save me and herself time by doing the things I mentioned earlier (templates for offers and copies of your check for EMD). You might want to save the latter information until you are sure you have an investor friendly agent who knows what we do. If he/she is the right agent, they will know how we operate and how to make their own jobs easier to accommodate us and to make more money for themselves.
Just do what Dean teaches and you will not be breaking any laws. Dean is an ethical and professional business man who just happens to be a very personable man in business as well. He would not and will not teach anything that is not correct, legal, ethical, professional, or honest. He cares about our career and our goals and he is always looking for better ways for us to reach our goals as he shares volumes of information with us each and every week. Just follow his lead and his teachings and you can't go wrong. But be prepared as I said before to defend yourself. Reading Dean's books is the best way to know all you need to know about being a real estate investor. Read them!! Of course, the forums are stock full of great advice and information from seasoned REIs each and every day. Use it!!
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
Thank you for the info and I am going to follow exactly what dean teaches. I am on my 3rd book and ready to get started.
We all know that there are all kinds of people in the world and some are more difficult than others to get along with. It sometimes takes a lot of patience and negotiation to get along. Also, even though we are not doing anything illegal it is better not to put all our business out there as in tell things on a need to know basis.
I am sorry that it caused problems but kudos to you for putting this out to our DG family to learn from.
Just absorb all you can and ask questions on here. There are numerous investors on this site and whatever your question, someone will have the answer or know where you can get it!
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
Yes, remember how ignorant we all were when we first started reading Dean's books. Some of us had never had any dealings with real estate except maybe to buy a house. I was a real estate agent at one time, but never learned as much about real estate or the real estate market until I became a DG student. Even real estate agents learn a lot from Dean! He's the man when it comes to real estate investing!!
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
Shirley,
Sorry to hear about the problems that ignorance can cause... I'm sure that the bond that your daughter and son-in-law share is much stronger than just some words that your re agent has filled his head with... in the end, the truth always prevails.
To your continued success,
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
It sounds like there are more problems there than just MOM mouth...He might be gone more than she likes as well...Can't win...
Not having a goal is worse than not setting one..
http://www.deangraziosi.com/real-estate-forums/investing-journals/92139/... -
http://www.deansmedia.com/play.php?vid=266
it is a shame to hear about your predictiment. Real estate is a strange animal whereby the folks that should know the most (Realtors, for example) sometime know the least. The "experts" get caught up in their little world and can't see the forest because of the trees.
However, with that said, I have also seen real estate investors that interpert how to do something (ie, wholsaling) but do it wrong and act more like an agent than an assignor. There is a right way and a wrong way; but it is not my place to instruct in the nuances and differnces. Dean's concepts are valid but the execution can be a different matter altogether. Just make sure that you are following the execution legally in your state and you will be fine.
But one last note: if you ever go to court over this, the odds of using Dean's book as a valid defense is probably slim to none. In other words; know the laws in your state.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
I agree. Truth does always prevail!! Thanks for the encouragement.
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
He is gone more than she likes and they have 2 children, ages 2 and 4. I help all I can when he's gone, but that's not really enough. He makes good money and they have a beautiful home and everything anyone would ever need or want, but money isn't everything as we all know. Family should always come first. He's never been much of a talker and when she tries to communicate things to him that upset her, he gets defensive and an argument prevails. When he's home, he helps some, but mostly plays sophisticated games on the computer with someone in another part of the world! Also not good, so you are right. No one can win in this situation.
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
Thank you for bringing that up, and of course you're right. State laws are different and everyone should make sure they know what their state laws dictate. I should have said that, but did not think about new investors not knowing this. The best thing for them to do is to get an attorney who specializes in real estate.... and word of mouth goes a long way in finding one who works closely with investors.
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
What a mess for you!
I am sorry for your daughter having such an ignorant MIL. I have been in her shoes and it isn't fun!
I hope it all works itself out.
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
Thank you, I hope so too!
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
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Sorry to hear of your dilema but you handled it very well.